As the owner of a company, you probably have two types of employees: full-time and part-time. However, since part-time employees are only contributing a small amount of their time, it’s the full-time employees that are your go-to in a particular situation.
Granted, in certain situations, a part-time employee might become a part-time one – depending on the finances of your company and the preferences of the worker. Not only will an increase in the number of workers be synonymous with the growth of your company, but it will also express an improvement in the environment for any potential employees.
This is precisely why you might want to keep tabs on the number of full-time employees – and how much their numbers grow. At first, it may seem fairly confusing – particularly if you have a bigger company. However, with the correct data, you should be able how many employees you currently have on board – and how that number has changed over the time.
What is FTE and Why Does it Matter?
The FTE (Full-Time Employees) is a metric that measures precisely how many full-time hours have been completed by the company. To get that number, you will have to use both the part-time and full-time count – which you will add in several simple calculations.
To reach the FTE number, you will have to take the number of part-time employees and see how they would fare on a full-time basis. After that, you may fold the full-t9ime employees into a final count.
Why does this matter, you may ask? Well, your number of full-time employees shows whether or not you can be considered an applicable large employer (ALE, so to speak).
And no, we’re not talking about delicious beverages here; as an ALE, it means that you’ve had at least 50 employees last year and that your numbers keep growing. It means that you are able to provide health insurance now and that you have all it takes to keep full-time users – on a full time.
How to Calculate Your Full-Time Employees Number
As mentioned, while this metric leads you to think about full-time employees – but in fact, it is a mix between the full-time and the part-time ones. Basically, what matters is to know the full-time hours that your company counts. Here’s how you do it:
- Take the number of part-time workers that you have
- Add the number of hours that those workers check in every week
- Divide the result by 30 and round it into the closest whole number
- Add the number of full-time employees that you have contracted
With that, you have your FTE number – and how many full-time employees you can say you really have.
Keeping track of the full-time employees and the hours that they bring out over time is crucial for every business. Unless you have an average, you may not be able to take on the correct number of tasks. This, in turn, can cause your company to be swamped by tasks – or realize that they do not have enough.